Eliminate the taxable maximum in years 2015 and later, and apply full 12.4 percent
payroll tax rate to all earnings. Provide benefit credit for earnings above the
current-law taxable maximum, adding a bend point at the current-law taxable maximum
and applying a formula factor of 3 percent for AIME above this new bend point.
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memo (National Academy of Social Insurance)

2.15

2.16

75%

44%

E2.4

Eliminate the taxable maximum for years 2021 and later (phased in
2015-2020), and apply full 12.4 percent payroll tax rate to all
earnings. Provide benefit credit for earnings above the current-law
taxable maximum that are subject to the payroll tax, using a
secondary PIA formula. This secondary PIA formula involves: (1) an
"AIME+" derived from annual earnings from each year after 2014 that
were in excess of that year's current-law taxable maximum; (2) a new
bend point equal to 134 percent of the monthly current-law
taxable maximum; and (3) formula factors of 3 percent and 0.25
percent below and above the new bend point, respectively.
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memo (Deutch)

Eliminate the taxable maximum in years 2025 and later. Phase in elimination by taxing all
earnings above the current-law taxable maximum at: 1.24 percent in 2016, 2.48 percent in 2017,
and so on, up to 11.16 percent in 2024. Provide benefit credit for earnings above the current-law
taxable maximum, adding a bend point at the current-law taxable maximum and applying a formula
factor of 5 percent for AIME above this new bend point.
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memo (Harkin 2012)

1.91

2.05

66%

42%

E2.11

Eliminate the taxable maximum in years 2020 and later. Phase in elimination by taxing all
earnings above the current-law taxable maximum at: 2.48 percent in 2016, 4.96 percent in 2017,
and so on, up to 12.40 percent in 2020. Provide benefit credit for earnings above the current-law
taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This
secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after
2014 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of
5 percent on this newly computed "AIME+".
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memo (Harkin 2013)

2.09

2.16

72%

44%

E2.12

Eliminate the taxable maximum in years 2026 and later. Phase in elimination by taxing all
earnings above the current-law taxable maximum at: 1.24 percent in 2017, 2.48 percent in
2018, and so on, up to 11.16 percent in 2025. Provide benefit credit for earnings above
the current-law taxable maximum. Create a new bend point at the current-law taxable maximum
with a 3 percent formula factor applying above the new bend point.
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memo (Moore)

1.91

2.15

66%

44%

E2.13

Apply OASDI payroll tax rate on earnings above $400,000 starting in
2016, and tax all earnings once the current-law taxable maximum exceeds $400,000.
Provide benefit credit for earnings above the current-law taxable maximum that
are subject to the payroll tax, using a secondary PIA formula. This secondary
PIA formula involves: (1) an "AIME+" derived from annual earnings from each year
after 2015 that were in excess of that year's current-law taxable maximum; and
(2) a formula factor of 2 percent on this newly computed "AIME+".
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memo (Larson)

Increase the taxable maximum such that 90 percent of earnings are subject to the payroll tax
(phased in 2015-2024). In addition, apply a tax rate of 6.2 percent for earnings above the
revised taxable maximum (phased in from 2015-2024). Provide benefit credit for earnings
taxed up to the revised taxable maximum.
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memo (Senate Special Committee on Aging)